Barry, how is the restoration going?!
I think your idea for doing it is about right. You've got to get rid of that rust or it will get worse so once you start you've got to do it all. But as you say you don't need to make it concourse. I'm restoring my C15T and am trying to keep it very much in line with how it might have been as a competition bike in the sixties. No powder coating for me, I'm hand painting the frame in coach enamel. It looks smart but not over done.
I was quite interested to see your bike because it's given me an idea about what colour I'm going to paint the tank. It's got a period alloy trials tank on it which I'm going to do two tone, silver at the back and another colour at the front. Looking at your original bike I'm now thinking that the blue on yours might look quite good. I'm guessing its Nutley Blue which was a BSA colour on many bikes in the 60's.
Anyway, it would be good to hear the old Beesa is doing!